ADT reports fourth quarter and full year 2023 financial results

Streamlined focus on innovation and growth in core consumer markets

6 min read

ADT's financial results show momentum going into 2024, anchored by strong growth in cash flow and total revenue of $1.2 billion in Q4.

Fortified balance sheet with $2.1 billion of debt reduction in 2023

Continued record recurring monthly revenue and strong retention

Improved capital efficiency with revenue payback of 2.1 years
Driving momentum into 2024, anchored by strong growth in cash flow

ADT, the most trusted brand in smart home and small business security, today reported financial results for the fourth quarter and full year of 2023.

Financial highlights for the fourth quarter and full year are listed below. Except for cash flow measures, prior period amounts have been recast to exclude the commercial business, consistent with continuing operations GAAP presentation following the sale of the commercial business. Variances are on a year-over-year (or quarter-over-prior year quarter) basis unless otherwise noted.

Fourth quarter 2023

  • Total revenue of $1.2 billion with end-of-period recurring monthly revenue (RMR) up 4% to $353 million ($4.2 billion on an annualized basis)
  • Consumer and Small Business (CSB) revenue of $1.2 billion, up 5% and segment Adjusted EBITDA of $627 million, up 8%
  • High customer retention with gross revenue attrition maintaining 12.9%
  • GAAP income from continuing operations of $85 million, or $0.09 per diluted share, down $57 million or 40%
  • Adjusted income from continuing operations of $226 million, or $0.25 per diluted share, up $148 million
  • Adjusted EBITDA from continuing operations of $599 million, up 1%

Full Year 2023

  • GAAP loss from continuing operations of $65 million, or $(0.07) per diluted share, which includes $511 million in Solar segment goodwill impairment charges
  • Adjusted income from continuing operations of $439 million, or $0.51 per diluted share
  • Adjusted EBITDA from continuing operations of $2,365 million, with CSB segment Adjusted EBITDA of $2,481 million, up 8%
Jim DeVries
Jim DeVries, ADT Chairman, President and CEO

“2023 was a pivotal year for ADT. Following the divestiture of our commercial business and decision to exit solar, our model is simplified and focused on our core consumer security and smart home business. Entering 2024, we are focused on driving significant cash flow, while continuing to invest in both growing and serving our customer base,” said Jim DeVries, ADT Chairman, President and CEO. “The substantial progress we’ve made in debt reduction, coupled with our confidence in continued cash flow generation, enables us to also return capital to shareholders through the 57% dividend increase and a $350 million share repurchase program authorization we announced earlier this year. We remain focused on generating value for our shareholders, customers and employees.”

Business highlights

Foundation for growth
  • Continued growth of RMR: The end-of-period RMR balance was a record $353 million ($4.2 billion on annualized basis), representing a 4% increase. More than 85% of CSB revenue was generated from this durable recurring revenue.
  • Maintained near-record customer retention and improved revenue payback: With strong customer satisfaction, trailing 12-month gross customer revenue attrition was 12.9%, and revenue payback ended 2023 at 2.1 years, a 0.1 year improvement.
Unlocking shareholder value
  • Balance sheet fortification: During 2023, ADT reduced debt by $2.1 billion, improved borrowing costs by approximately 35 basis points, and extended debt maturities. Additionally, both Moody’s and S&P recognized these and other improvements with corporate rating upgrades.
  • Completed sale of commercial business: On Oct. 2, 2023, ADT completed the divestiture of its commercial business for a purchase price of approximately $1.6 billion.
  • Solar business exit: On Jan. 24, 2024, ADT announced it will be exiting its residential solar business following the previously announced footprint restructuring and detailed strategic review.
Innovative offerings, unrivaled safety and premium experience
  • ADT Home Security Program for State Farm: In 2023, ADT and State Farm advanced their partnership with ADT’s program for State Farm customers expanding to 13 states. Participating State Farm customers receive exclusive discounts on ADT home security products and professional monitoring.
  • ADT named most trusted brand: For the fifth consecutive year, ADT earned the title of most trusted home security system brand in a study based on consumer ratings conducted by Lifestory Research. ADT is among only 10 brands to have achieved this feat for five consecutive years.
  • Expanded Alarm Scoring pilot: ADT expanded its Alarm Scoring pilot program into six U.S. cities, with plans to continue expansion in 2024. This innovative method of classifying alarms provides a uniform and reliable categorization of severity levels, giving first responders the most precise and crucial alarm data.
Progress on our ESG journey
  • ADT Safe Places Program in 2023: ADT’s corporate social responsibility program, ADT Safe Places, is positively impacting communities throughout the country with purposeful nonprofit partnerships, volunteerism and charitable giving. In 2023, ADT donated a total of $683,000 to 39 nonprofit organizations.
  • ADT’s CDP Climate Change Disclosure: ADT achieved a CDP score at the “Awareness” level, in line with the North American regional average, including the commercial and consumer services sector.

2024 financial outlook

ADT is providing the following financial guidance for 2024, with all metrics representing an improvement over 2023 performance.

(in millions, except per share data)

CSB Segment

Total Revenue

Adjusted EBITDA

Total Company

Adjusted EPS

Adjusted Free Cash Flow 

2024 guidance

CSB Segment



Total Company



Read the complete earnings report with financial results and complete tables with footnotes.

Conference call

As previously announced, ADT leaders will host a conference call at 10 a.m. ET today to discuss the company’s fourth quarter and full year 2023 results and lead a question-and-answer session. Participants may listen to a live webcast through the investor relations website at A replay of the webcast will be available on the website within 24 hours of the live event.

Alternatively, participants may listen to the live call by dialing 1-833-470-1428 (domestic) or 1-404-975-4839 (international), and providing the access code 533961. An audio replay will be available for two weeks following the call, and can be accessed by dialing 1-866-813-9403 (domestic) or 1-929-458-6194 (international), and providing the access code 375946.

A slide presentation highlighting the company’s results will also be available on the Investor Relations website. From time to time, ADT may use its website as a channel of distribution of material company information. Financial and other material information regarding the company is routinely posted on and accessible at

Media Contacts

Investor Relationsinvestorrelations@adt.com888-238-8525

About ADT
ADT provides safe, smart and sustainable solutions for people, homes and small businesses. Through innovative offerings, unrivaled safety and a premium customer experience, all delivered by the largest networks of smart home security professionals in the U.S., we empower people to protect and connect to what matters most. For more information, visit

Forward-looking statements
ADT has made statements in this press release that are forward-looking and therefore subject to risks and uncertainties, including those described below. All statements, other than statements of historical fact, included in this document are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to, among other things, the Company’s planned exit of the residential solar business and the expected costs and benefits of such exit (the “ADT Solar Exit”); the repurchase of shares of the Company’s common stock under the authorized share repurchase program; the Company’s ability to reduce debt or improve leverage ratios, or to achieve or maintain its long-term leverage goals; the integration of the December 2023 strategic bulk purchase of customer accounts; the Company’s outlook and/or guidance, which includes total revenue and Adjusted EBITDA for the Consumer and Small Business (“CSB”) segment and Adjusted Diluted Income (Loss) per Share (“Adjusted EPS”) and Adjusted Free Cash Flow (including interest rate swaps) for total company; any stated or implied outcomes with regards to the foregoing; and other matters. Without limiting the generality of the preceding sentences, any time we use the words “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and, in each case, their negative or other various or comparable terminology, and similar expressions, we intend to clearly express that the information deals with possible future events and is forward-looking in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. We caution that these statements are subject to risks and uncertainties, many of which are outside of our control and could cause future events or results to be materially different from those stated or implied in this press release, including, among others, factors relating to uncertainties as to any difficulties with respect to the effect of the Commercial Divestiture and ADT Solar Exit on our ability to retain and hire key personnel and to maintain relationships with customers, suppliers and other business partners; risks related to the Commercial Divestiture and ADT Solar Exit, including ADT’s business becoming less diversified and the possible diversion of management’s attention from ADT’s core CSB business operations; uncertainties as to our ability and the amount of time necessary to realize the expected benefits of the Commercial Divestiture and ADT Solar Exit, including the risk that the ADT Solar Exit may not be completed in a timely manner or at all; our ability to maintain and grow our existing customer base and to integrate  the December 2023 strategic bulk purchase of customer accounts; activity in repurchasing shares of ADT’s common stock under the authorized share repurchase program; dividend rates or yields for any future quarter; and risks that are described in the Company’s Annual Report and its Quarterly Reports on Form 10-Q, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in those reports, and in our other filings with the SEC. Any forward-looking statement made in this press release speaks only as of the date on which it is made. ADT undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.